Anybody know whats happening next? 16,ooo,ooo big ones trading today.
Regards
WILLIAM RESOURCES REACHES AGREEMENT WITH SECURED LENDERS TO TERRA MINING
TORONTO, ON--
William Resources Inc. (the "Company") has entered into an
agreement with its lenders under certain loan facilities for
Terra Mining AB, the owner of the Bjorkdal operations in Sweden,
pursuant to which the lenders will not seek repayment of the
outstanding debt of US$31.1 million prior to December 31, 1999,
on certain conditions. The agreement has been negotiated and
entered into in response to demand letters for payment of
principal and interest under the respective loan facilities. The
agreement provides that the lenders will assume control of Terra.
In consideration, the lenders will release the guarantees,
provided by the Company, of the obligations due under the loan
facilities.
During the period up to May 15, 1999, the lenders may not sell
Terra or the underlying assets unless the sale yields an amount
sufficient to satisfy the debt in full. Any sale during such
period will be subject to a right of first refusal on the part of
the Company that would require the Company to match the sale
price and pay reasonable break up fees. Any residual interest,
if the sale occurs prior to December 31, 1999, would be paid to
the Company. The Company may at any time repay the loans in
full.
The decision was taken by the Company after careful deliberation
and taking into consideration a number of factors, including
Terra's immediate cash requirements and the advantages of
obtaining releases while maintaining residual interests in the
companies and assets. The lenders, in assuming operational
control, will be responsible for the cash requirements and the
Company understands that they will advance at least US$1 million
to meet Terra's immediate needs and may defer interest payments.
The Company is continuing negotiations with the lenders to the
Jacobina operations and expects to reach an agreement with the
lenders relating to the Company's obligations under this
facility.
Contact: Stan Bharti, Chairman & CEO
George Faught, Executive Vice President & CFO
Tel: (416) 861-9500
Fax: (416) 861-8165
WILLIAM RESOURCES INC.
390 Bay Street, Suite 2008
Toronto, Ontario M5H 2Y2
Internet Address williamres.com
E-mail Address: info@williamres.com
Trading Symbol TSE - WIM
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